IRS Debt Can Lead to the Loss of Your Passport and Leave You Stranded Outside the U.S.

The Internal Revenue Service (IRS) is making some fancy moves to collect past due tax debt. If someone owes a tax debt of $52,000 or more, the IRS can notify the State Department to deny a passport application or renewal. But here is where it gets spicy, Under the Fixing America’s Surface Transportation (FAST) Act … Read more

IRS Collection Alternatives – Five Potential Options to Pay an IRS Debt

If you owe the IRS and cannot pay in full, there are five collection alternatives that you can obtain from the IRS that you can use. Extensions of time to pay and easy to obtain installment agreements are the most common alternatives selected by those who owe. In most instances, individual taxpayers just need a … Read more

How the IRS Was Gutted

In the summer of 2008, William Pfeil made a startling discovery: Hundreds of foreign companies that operated in the U.S. weren’t paying U.S. taxes, and his employer, the Internal Revenue Service, had no idea. Under U.S. law, companies that do business in the Gulf of Mexico owe the American government a piece of what they … Read more

Podcast – Debit Cards Versus Credit Cards – Layaway – Vacations – Big IRS Refunds

This week Damon Day and I talk about a wide variety of topics. Everything from why big TRS refunds spell trouble to what you really need to know about credit cards and debit cards. The advice is what you would least expect. As usual, the commentary is irreverent at times and we certainly don’t take … Read more

Who’s More Likely to Be Audited: A Person Making $20,000 — or $400,000?

When Natassia Smick, 28, filed her family’s taxes in January, she already had plans for the refund she and her husband expected to receive. Mainly, she wanted to catch up on her credit card debt. And she was pregnant with their second child, so there were plenty of extra expenses ahead. Since Smick, who is … Read more

How Do I Deal With These Back Taxes and 1099-C I Just Got?

“Dear Jim, I am dealing with several major tax issues with the IRS right now and my situation is very complicated — I really need your help. I am a single female in my 50’s, unemployed, without any income, and have not worked since 2006 due to medical reasons. In March, 2008 I filed a … Read more

How to Avoid IRS Collection Action and Levies

Bob never intended for it to get this far. When he filed his return in April, he thought, “I’ll pay this off in a month or two.” Somehow, like many Americans, his good intentions fell by the wayside as other urgent financial obligations arose and his unpaid balance at the IRS remained unpaid longer than … Read more

IRS Offers Payment Plans to Those Having Money Troubles

If you owe the IRS taxes and you’re having a difficult time paying, you’re not alone. In 2010, 23.9 million individual taxpayers filed a tax return with a balance due. More than 20 million taxpayers paid the tax with their return, after the first IRS notice, or after receiving an extension to pay from the … Read more

Apple Virus, South African Consumer Debt, DocX Racketering, UK Debt Relief

Fake Apple Emails Lead to Computer Virus Infection Online criminals targeting exploits is nothing new, but they are now taking a multi-pronged approach to compromising your security. They are not just exploiting unpatched flaws in your applications; when that fails they convince you to infect yourself. Take, for example, this email I received today pretending … Read more

The IRS Payment Demands Are Crippling Us With Our Other Bills. What Can We Do?

“Dear Jim, Our employer (my husband and i worked for the same company for the past 5 years) took deductions for state and federal taxes totaling 11% instead of the usual 25% which we, unfortunately, caught too late. We are now on a payment plan for the states we owe (there are two since we … Read more

We Owe the IRS Back Taxes and Afraid They Will Put a Lien On Our House. – Kate

“Dear Steve, I’m paying off the IRS for 2008 tax year (total is now up to $37k), and the interest keeps adding to the total owed. I owed for 2010 and paid that amount, but now owe $10k for 2011, due to too little withheld from my and my husband’s taxes. The initial job loss … Read more

We Have an IRS Payment Plan But My Husband Just Died. What Do I Do? – Maggie

“Dear Steve, My husband recently passed away. I know I have to file taxes for him and I since we were married, but my question is do I still have to pay any taxes that we owed from previous years. He was making a payment once a month. Do I have to continue to do … Read more